Rich or poor: Who should pay higher tax rates?
General Finance
2017-11-17 v1 Physics and Society
Abstract
A dynamic agent model is introduced with an annual random wealth multiplicative process followed by taxes paid according to a linear wealth-dependent tax rate. If poor agents pay higher tax rates than rich agents, eventually all wealth becomes concentrated in the hands of a single agent. By contrast, if poor agents are subject to lower tax rates, the economic collective process continues forever.
Keywords
Cite
@article{arxiv.1711.06164,
title = {Rich or poor: Who should pay higher tax rates?},
author = {Paulo Murilo Castro de Oliveira},
journal= {arXiv preprint arXiv:1711.06164},
year = {2017}
}
Comments
5 pages, 3 figures